In late 1789, Tipu Sultan, the emperor of the Kingdom of Mysore, launched an invasion against Travancore, a British East India Company client. After more than 2 years of battle, Lord Charles, 2nd Earl Cornwallis' company, together with soviet troops from the Maratha Empire as well as Hyderabad, laid siege to Mysore's capital, Seringapatam, in February 1792. (also called Srirangapatinam). Rather than trying to attack the buildings at tremendous expense to both parties, Cornwallis sought to settle the situation via discussions with Tipu. The agreement that emerged was approved on March 18th.

Cornwallis intended to use the deal as a wide peace accord to avoid conflict between the Marathas and the Hyderabadis and to reduce or remove the threat of Mysore. The Marathas had objected to such words being included.